Innateability

 The maturity level of a business capability would be based on the ability for the business to deliver on customer needs to solve problems innovatively and  achieve the desired outcome coherently.

Organizational capability is the means to an end for achieving certain business performance. An organization would need to ask whether they need the capability at the base level to sustain the business, or at differentiating level to be the key differentiator for the business. 

The evaluation of capability maturity is based on capability effectiveness, innovativeness, or impact. What level of capability development is required in future based on business strategic priorities. It’s important to make an objective assessment of which level of maturity your organizations have arrived at. 

Organizational capability coherence: The ability to maintain focus, consistency, and clarity, even under extreme pressure, is what science calls coherence. Organization capability coherence is the decisive factor for the success of business strategy implementation. Consider the digital organization as a coherent, self-organized but interlaced and hyper-connected ecosystem, the degree of business coherence decides how flexibly the organization can adapt to business dynamics and how effectively it can drive progressive changes. 

The organization’s core competency is based on the set of differentiated and cohesive capabilities and how fast and effective they can be built upon. Organization capability coherence depends on how well organizations can take the step-wise approach to make change, continual renewal, and build a long-term winning position of the business.

Innovativeness: There are basic capabilities and differentiated capabilities. Organizations today need to build core capabilities with focus on uniqueness and differentiation. The innovativeness of organizational capability depends on its vast components such as leadership, people, process, technology, culture, etc. 

Innovation often has a lot to do with external circumstances, and management tends to focus on internal circumstances. The robust processes and tools that enable any entity to generate winning concepts for innovation management on a consistent basis, is the prerequisite to improve the innovativeness of business capability for sustaining business advantage and growth. 

Impact: Organization capability consists of people, process, technology, resources, and assets. Organizational capability that gets stuck at the lower level of business maturity can cause a silo based organization with business ineffectiveness. It is important to have a good understanding of current and future capabilities as well as their impact on implementing the strategic business goals. Creating an organizational strategy-capability mapping helps to set goals for capability deployment and competence building. 

When building the future state of the business, make sure that you break it down into looking at the ideal future first. A strategically competent organization has a deliberately close alignment among the company’s strategic direction and most distinctive capabilities to make a bigger impact on its ecosystem.

The organizational maturity is not based on how many years organizations have been around, but about how proactively the organizations can respond to the business requests and how effectively it can provide high performance in a consistent way. The maturity level of a business capability would be based on the ability for the business to deliver on customer needs to solve problems innovatively and  achieve the desired outcome coherently.

Posted in: Enterprise Capability